What do I do with shares

hayley39

Hi, I have received some free shares from work. And I would like to know what to do with them as I have never had shares before. What should I do with them. Leave them where they are or transfer them??
Many Thanks Hayley..

DocBambs

Did you actually get shares or share options? I worked for a US company and they loved giving out options but suggesting that they were giving us shares.

If it's shares, it could easily become cash - you could just sell them (your high street branch of your bank might be able to help, or there are online services which I suspect people here will be able to recommend.)

Or...

You could keep them. If the share price rises then they will be worth more, but if the share price goes down then they will be worth less. (simple really!) While you have the shares you might get other benefits - dividends are paid on many shares once per year. It isn't guaranteed, but some of the banks shares which have bombed recently still paid good dividends (I think LloydsTSB paid out at about 2-3% this year which isn't bad - though it has been 7-8% in the past.)

FT.COM will lots of information about the share history and expected performance.

If you only got a few (hundreds or a couple of thousand) it's probably worth holding onto them. If it's a lot you might need some professional advice.

Don't consider them an investment. You didn't say which company, but almost no single company is a safe place to have all your investments and if you are going to use shares as a way of investing you should have a balanced profile of shares (perhaps 20-30 different companies in different sectors.)

DB

hayley39

Hi DB,
I work for Asda, and I think they are worth about £300. at the moment.But I think (I don't know much!!) That a broker has them not a bank. so do you think I should transfer them to a bank if I decide not to sell them?? Hayley

Farway

Hayley39, if they are held by a broker then the broker will sell them for you, but there will be a fee, same a bank will also charge a fee

Some fees are flat rate, some are a percentage with a minimum charge

If you could tell us who is holding them on your behalf the board may be able to give more details on costs involved

There is no benefit in transferring them a to bank, they will just be doing the same job as the broker, so why bother?

opinions4u

Hayley, please clarify exactly what you have been given.

If they are "free shares" and you sell them within 5 years, you will be liable to tax and national insurance on them.